Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 


Falling Property Rates Drive Q1 Global Insurance Price Fall

News release

Falling Property Rates Drive Global Insurance Price Fall in Q1: Marsh

London, Tuesday 6 May, 2014 – Global insurance rates declined in the first quarter of 2014, driven largely by a continued softening in property rates, according to Marsh’s latest Global Insurance Market Quarterly Briefing. The Marsh Risk Management Global Insurance Index declined for the fourth consecutive quarter and is now at its lowest level since the third quarter of 2012. Rates fell slightly overall in the US, reversing an upward trend in previous quarters.

According to Marsh, a mix of strong competition with ample capacity and a scarcity of major events contributed to a drop in property insurance rates across all major regions in the first quarter. The US and UK experienced their largest quarterly decline in more than two and a half years — 2.5% and 5%, respectively. In Asia-Pacific, rate reductions of up to 20% were widespread for commercial business, in some cases nearing 25%, depending on the size of the risk. Latin America recorded the largest average property renewal rate reduction among major global regions, at 7.6%.

While the US and Continental Europe saw a slight increase in casualty rates, the casualty market continued to favour insurance buyers, with rates remaining generally stable overall and decreases being recorded across Latin America, Asia-Pacific, and in the UK.

“The first quarter saw marked evidence of additional capacity flowing into the global market, primarily from existing players looking to increase their market share in particular lines of business or growing territories,” commented David Batchelor, president of Marsh’s International Division. “And continuing competitiveness in the reinsurance market also added fuel to pricing reductions in primary markets.”

Among other findings from the report:

• The professional liability market remained stable overall, with rates on average flat or declining by up to 10% in Australia, France, Germany, India, and Korea, depending on the quality of the risk.

• Italy and Spain were the only countries in the Eurozone to experience a rate increase for financial institutions coverage during the first quarter, with rates on average flat to up 20%.

• Total insurable values continued to increase modestly, as economies recover from the global financial crisis. Buyers that provide property underwriters with complete and accurate data are best positioned for more favourable terms at renewal.

ENDS

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

I Sing The Highway Electric: Charge Net NZ To Connect New Zealand

BMW is turning Middle Earth electric after today announcing a substantial contribution to the charging network Charge Net NZ. This landmark partnership will enable Kiwis to drive their electric vehicles (EVs) right across New Zealand through the installation of a fast charging highway stretching from Kaitaia to Invercargill. More>>

ALSO:

Watch This Space: Mahia Rocket Lab Launch Site Officially Opened

Economic Development Minster Steven Joyce today opened New Zealand’s first orbital launch site, Rocket Lab Launch Complex 1, on the Mahia Peninsula on the North Island’s east coast. More>>

Earlier:

Marketing Rocks!
Ig Nobel Award Winners Assess The Personality Of Rocks

A Massey University marketing lecturer has received the 2016 Ig Nobel Prize for economics for a research project that asked university students to describe the “brand personalities” of three rocks. More>>

ALSO:

Nurofen Promotion: Reckitt Benckiser To Plead Guilty To Misleading Ads

Reckitt Benckiser (New Zealand) intends to plead guilty to charges of misleading consumers over the way it promoted a range of Nurofen products, the Commerce Commission says. More>>

ALSO:

Half A Billion Accounts, Including Xtra: Yahoo Confirms Huge Data Breach

The account information may have included names, email addresses, telephone numbers, dates of birth, hashed passwords (the vast majority with bcrypt) and, in some cases, encrypted or unencrypted security questions and answers. More>>

ALSO:

Rural Branches: Westpac To Close 19 Branches, ANZ Looks At 7

Westpac confirms it will close nineteen branches across the country; ANZ closes its Ngaruawahia branch and is consulting on plans to close six more branches; The bank workers union says many of its members are nervous about their futures and asking ... More>>

Interest Rates: RBNZ's Wheeler Keeps OCR At 2%

Reserve Bank governor Graeme Wheeler kept the official cash rate at 2 percent and said more easing will be needed to get inflation back within the target band. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news